Statistic Info

By definition, non-renewal rates are higher than gross dollar churn rates. However, it is interesting to see that the non-renewal rates are also higher for shorter duration contracts.

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More SaaS + Software Stats

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

Companies with longer contracts (2+ years) reported the lowest annual unit churn

High-growth companies generate 60% fewer sales opportunities than low-growth companies

Getting paid in advance is really smart idea if you can do it without impacting bookings, as it can provide the cash flow that you need to cover your cash problem

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn

More Growth Strategy Stats

All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

In 2018, the global tech spending is forecast to amount to 3,212 billion U.S. dollars.

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

In 2017, Foxconn Technology Group achieved a net income of 135.37 billion New Taiwanese dollars, the equivalent to approximately 4.55 billion U.S. dollars.

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

26% of SAAS companies with at least $15MM in GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

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